[Federal Register Volume 59, Number 51 (Wednesday, March 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5144]


[[Page Unknown]]

[Federal Register: March 16, 1994]


=======================================================================
-----------------------------------------------------------------------

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

 

48 CFR Parts 1801, 1804, 1808, 1809, 1810, 1814, 1815, 1816, 
1817, 1824, 1825, 1831, 1832, 1835, 1837, 1842, 1845, 1846, 1847, 1852, 
and 1870

[NASA FAR Supplement Directive 89-14]
RIN 2700-AB35

Acquisition Regulation; Miscellaneous Amendments to NASA FAR 
Supplement; and Reviewing the Reasonableness of Contractor and 
Subcontractor Compensation

AGENCY: Office of Procurement, Procurement Policy Division, National 
Aeronautics and Space Administration (NASA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This document amends the NASA Federal Acquisition Regulation 
Supplement (NFS) to reflect a number of miscellaneous changes dealing 
with NASA internal or administrative matters, such as removal of NASA 
internal reporting requirements. This rule also sets forth the policies 
for reviewing the reasonableness of contractor and subcontractor 
compensation for service contracts, as well as the solicitation 
provision for obtaining such information. It also sets forth the 
requirement for the prenegotiation position memorandum to discuss 
excessive wages, if any are found.

EFFECTIVE DATE: This regulation will be effective March 31, 1994, 
except that the amendments to sections 1801.602-3, 1814.406-3, 
1814.406-4, and 1816.603-3 are effective March 16, 1994.

FOR FURTHER INFORMATION CONTACT: Mr. David K. Beck, (202) 358-0482.

SUPPLEMENTARY INFORMATION:

Availability of NASA FAR Supplement

    The NASA FAR Supplement, of which this rule is a part, is available 
in its entirety on a subscription basis from the Superintendent of 
Documents, Government Printing Office, Washington, DC 20402, telephone 
number (202) 783-3238. Cite GPO Subscription Stock Number 933-003-
00000-1. It is not distributed to the public, either in whole or in 
part, directly by NASA.

Removal of Requirement To Report Ratification Actions to Headquarters

    As a result of a NASA Procurement Officers Conference in November 
1993, this final rule removes the requirement in section 1801.602-
3(b)(2) that NASA officials provide to NASA Headquarters a copy of each 
ratification of an unauthorized commitment along with documentation 
supporting the ratification. Ratifications at NASA have been reduced 
from 89 ratifications totalling $1.5 million in FY 90 to 27 
ratifications totalling $114,000 in FY 93. On September 30, 1993, 
additional procedures to control ratifications were required in 48 CFR 
1801.602-3(b)(1) (58 FR 51136 and 51137). Consequently, the reporting 
requirement in paragraph (b)(2) is no longer needed and will be 
eliminated.

Removal of Requirement To Report Certain Mistakes in Bids to NASA 
Headquarters

    Sections 1814.406-3 and 1814.406-4 are revised to eliminate the 
requirement to forward to NASA Headquarters copies of determinations 
made under (FAR) 48 CFR 14.406-3(c) and 14.406-4(d), respectively.

Removal of Requirement To Report Certain Letter Contracts to NASA 
Headquarters

    Section 1816.603-3(a) requires that letter contracts below the 
Master Buy Plan threshold (generally $25 million) be approved by the 
NASA Procurement Officer at each installation and that a copy of the 
approval and other information be provided to NASA Headquarters. This 
policy was established years ago to eliminate contractual problems and 
to reduce the large number of letter contracts prepared by NASA 
Centers. Based on data from our letter contracts status reports, the 
Centers are now writing very few letter contracts and the contractual 
problems have been eradicated.
    With removal of paragraphs (a) (2) and (3), NASA installations will 
no longer need to report this information to NASA Headquarters for 
letter contracts under $25 million ($10 million in the case of some 
smaller installations).

Removal of Requirement for Contract Funding Report

    Section 18-32.702-70(d) requires procurement officers to report by 
October 31 to the NASA Headquarters Financial Management Division (Code 
BFC) on the incremental funding waivers approved during the prior 
fiscal year. This final rule eliminates this internal NASA reporting 
requirement at the request of the NASA Center Procurement Officers in 
order to streamline operations. Procurement Officers will still 
maintain records of the waivers that they approve for incremental 
funding.

Addition of Coverage to NASA FAR Supplement on the Review of Contractor 
and Subcontractor Compensation for Reasonableness

    On September 8, 1993, a proposed rule to amend the NFS to add 
policies for reviewing the reasonableness of contractor and 
subcontractor compensation was published in the Federal Register (58 FR 
47244) for comment. All comments were reviewed. No changes have been 
made with the exception of deleting the word ``support'' in each case 
where it was used with ``service contract,'' ``service subcontracts,'' 
``service subcontractors,'' or ``services.'' The Office of Management 
and Budget has approved this information collection (OMB Number 2700-
0077) through November 30, 1996, under the Paperwork Reduction Act.

Miscellaneous Changes

    This rule revises the list of contacts in section 1801.370. Subpart 
4.6 is amended in order to revise the instructions to NASA contracting 
officers for completing NASA Form 507, Individual Procurement Action 
Report. A typographical correction is made in section 1817.504. Section 
1832.402-1 is revised to correct the name of the SBIR program. Section 
1832.705-2 is removed and 1832.705-270 is amended to require the 
contracting officer to place the Contract Funding clause in Section B 
of solicitations and contracts without modifying the FAR clause on 
Limitation of Funds. The following sections are amended in order to 
revise references to NASA Management Instructions and NASA Handbooks: 
1804.402; 1804.404-70; 1808.802; 1808.1100; 1809.200; 1810.002; 
1814.406-3; 1815.406-5; 1815.570; 1824.102; 1824.202; 1825.604; 
1835.003; 1837.200; 1842.173; 1842.202-72; 1845.302-70; 1846.270; 
1847.200-70; 1870.103, Appendix I, paragraphs 101.4. and 302.2.; and 
1870.303, Appendix I, paragraphs 404.2.l., 602.2., 603.5.b., and 
603.5.c. Paragraph (c) of the contract clause at 1852.237-71, Pension 
Portability, is amended to add, in place of the asterisk, a note that 
was inadvertently omitted. The note explains to NASA contracting 
officers the information that contracting officers may insert in 
paragraph (c).

Impact

    NASA certifies that this regulation will not have a significant 
economic effect on a substantial number of small entities under the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

List of Subjects in 48 CFR Parts 1801, 1804, 1808, 1809, 1810, 1814, 
1815, 1816, 1817, 1824, 1825, 1831, 1832, 1835, 1837, 1842, 1845, 1846, 
1847, 1852, and 1870

    Government procurement.
Tom Luedtke,
Deputy Associate Administrator for Procurement.

    Accordingly, 48 CFR parts 1801, 1804, 1808, 1809, 1810, 1814, 1815, 
1816, 1817, 1824, 1825, 1831, 1832, 1835, 1837, 1842, 1845, 1846, 1847, 
1852, and 1870 are amended as follows:
    1. The authority citation for 48 CFR parts 1801, 1804, 1808, 1809, 
1810, 1814, 1815, 1816, 1817, 1824, 1825, 1831, 1832, 1835, 1837, 1842, 
1845, 1846, 1847, 1852, and 1870 continues to read as follows:

    Authority: 42 U.S.C. 2473(c)(1).

PART 1801--PURPOSE, AUTHORITY, ISSUANCE

    2. Section 1801.105 is amended in paragraph (a) by adding the 
following entry in numerical order in the table as follows:


1801.105   OMB approval under the Paperwork Reduction Act.

    (a) * * *

------------------------------------------------------------------------
    NASA FAR supplement segment                OMB control No.          
------------------------------------------------------------------------
                                                                        
                                  *****                                 
18-31..............................                2700-0077            
                                                                        
                                 *****                                  
------------------------------------------------------------------------

    3. Section 1801.370 is amended by revising paragraphs (a)(1)(i), 
(a)(1)(ii), (a)(1)(iii), (a)(2)(i), (a)(2)(iv), (a)(5), and (b) to read 
as follows:


1801.370  Points of contact.

* * * * *
    (a) * * *
    (1) * * *
    (i) FAR Council--Eichenlaub
    (ii) FAR and NFS Substantive areas--

------------------------------------------------------------------------
               Area                              Analyst(s)             
------------------------------------------------------------------------
Part 1:                                                                 
  1.602-3..........................  Whelan.                            
  Balance of 1.6...................  Pesnell.                           
  1.7..............................  Pesnell.                           
  All other subparts...............  Eichenlaub.                        
Part 2.............................  Beck.                              
Part 3.............................  Muzio.                             
Part 4:                                                                 
  4.1..............................  Deback.                            
  4.2..............................  Beck.                              
  4.4..............................  Childs.                            
  4.6..............................  King/Beck.                         
  4.7..............................  Beck.                              
  4.8..............................  Childs.                            
  4.9..............................  Beck.                              
  4.70.............................  Whelan.                            
  4.71.............................  Beck.                              
  4.72.............................  Deback.                            
  4.73.............................  Pesnell.                           
Part 5.............................  Muzio.                             
Part 6:                                                                 
  6.5..............................  LaBeau/Pesnell.                    
  All other subparts...............  Pesnell.                           
Part 7.............................  O'Neill.                           
Part 8:                                                                 
  8.3..............................  Whelan.                            
  All other subparts...............  Childs.                            
Part 9:                                                                 
  9.5..............................  Muzio.                             
  All other subparts...............  Whelan.                            
Part 10............................  Sudduth.                           
Part 11............................  Sudduth.                           
Part 12:                                                                
  12.1.............................  Sudduth.                           
  12.2.............................  Whelan.                            
  12.3.............................  Muzio.                             
  12.5.............................  Whelan.                            
Part 13............................  O'Neill.                           
Part 14............................  O'Neill.                           
Part 15:                                                                
  15.1.............................  Whelan.                            
  15.4.............................  Whelan.                            
  15.5.............................  Sudduth.                           
  15.6.............................  O'Toole.                           
  15.7.............................  Childs.                            
  15.8.............................  Walker/Eichenlaub.                 
  15.9.............................  Walker/Eichenlaub.                 
  15.10............................  Brundage.                          
Part 16............................  Whelan.                            
Part 17............................  Sudduth.                           
Part 19............................  O'Neill.                           
Part 20............................  Muzio.                             
Part 22............................  Childs/Harding.                    
Part 23............................  Sudduth.                           
Part 24............................  Whelan.                            
Part 25:                                                                
  25.6.............................  Sudduth.                           
  All other subparts...............  Childs.                            
Part 27............................  Childs.                            
Part 28............................  Childs.                            
Part 29............................  Childs.                            
Part 30............................  Guenther/Eichenlaub.               
Part 31............................  LeCren/Eichenlaub.                 
Part 32............................  Childs.                            
Part 33............................  Brundage.                          
Part 34............................  Whelan.                            
Part 35............................  O'Neill.                           
Part 36............................  Pesnell/Stamper.                   
Part 37............................  Pesnell/Harding.                   
Part 39............................  O'Toole.                           
Part 42:                                                                
  42.7.............................  Balinskas/Eichenlaub.              
  42.8.............................  Balinskas/Eichenlaub.              
  42.10............................  Guenther/Eichenlaub.               
  42.12............................  King/Childs.                       
  All other subparts...............  Pendleton/Childs.                  
Part 43............................  Pendleton/Pesnell.                 
Part 44............................  Jeshow/Childs.                     
Part 45............................  Whelan/Pendleton/Wilchek.          
Part 46............................  Childs/Jeshow.                     
Part 47............................  Childs/Brunner.                    
Part 48............................  Wilson/Whelan.                     
Part 49............................  Whelan.                            
Part 50............................  Muzio.                             
Part 51............................  Childs.                            
Part 52............................  Childs/All analysts in assigned    
                                      areas.                            
Part 53............................  Beck.                              
Part 70:                                                                
  70.1.............................  Deback.                            
  70.2.............................  Deback.                            
  70.3.............................  O'Toole.                           
  70.4.............................  Sudduth.                           
------------------------------------------------------------------------

    (iii) Publication matters--Beck
* * * * *
    (2) Grants and cooperative agreements
    (i) All areas, including Federal Demonstration Project--Deback
* * * * *
    (iv) Intellectual Property--Mannix
* * * * *
    (5) Guidelines for Acquisition of Investigations (NHB 8030.6)--
Deback
* * * * *
    (b) Consolidated Contact List. 

------------------------------------------------------------------------
                        Name (code)                              (202)  
------------------------------------------------------------------------
Balinskas, James A. (HC)....................................    358-0445
Beck, David K. (HP).........................................    358-0482
Brundage, Paul D. (HP)......................................    358-0481
Brunner, Peter E. (JIB).....................................    358-2289
Childs, William T. (HP).....................................    358-0454
Deback, Thomas L. (HP)......................................    358-0431
Eichenlaub, Carl E. (HP)....................................    358-0483
Guenther, Anne C. (HC)......................................    358-0003
Harding, Allan D. (JL)......................................    358-2274
Jeshow, J. Ronald (HK)......................................  (703) 274-
                                                                    4127
King, Bruce C. (HM).........................................    358-0461
LaBeau, Michael D. (HS).....................................    358-0433
LeCren, Joseph F. (HC)......................................    358-0444
Mannix, John G. (GP)........................................    358-2424
Muzio, David L. (HP)........................................    358-0432
O'Bryant, Cynthia B. (HP)...................................    358-2105
O'Neill, Deborah A. (HP)....................................    358-0440
O'Toole, Thomas J. (HP).....................................    358-0478
Pendleton, Larry G. (HK)....................................    358-0487
Pesnell, James A. (HP)......................................    358-0484
Rosen, Eugene D. (K)........................................    358-2088
Smith, Phillip T. (BFC).....................................    358-1026
Stamper, William C. (JXF)...................................    358-1133
Sudduth, David S. (HP)......................................    358-0485
Walker, Reginald W. (HC)....................................    358-0443
Whelan, Thomas J. (HP)......................................    358-0475
Wilchek, Billie E. (JLE)....................................    358-2301
Wilson, Roger P. (HK).......................................    358-0486
------------------------------------------------------------------------

1801.602-3  [Amended]

    4. Paragraph (b) of section 1801.602-3 is amended by removing 
paragraph (b)(2), removing the paragraph designation ``(1)'' from 
paragraph (b)(1) following ``(b) Limitations.'', and redesignating 
paragraphs (i) through (iv) as paragraphs (b) (1) through (4).

PART 1804--CONTRACT REPORTING

    5. Section 1804.402 is amended by revising the first sentence to 
read as follows:


1804.402  General.

    NASA industrial security policies and procedures are prescribed in 
NMI 1600.2, NASA Security Program. * * *
    6. Section 1804.404-70 is amended by revising the third sentence to 
read as follows:


1804.404-70  Contract clause.

    * * * Include in the solicitation and contract a properly executed 
DD Form 254, Contract Security Classification, in accordance with NMI 
1600.2. * * *
    7. Section 1804.671-3 is amended by revising the first sentence to 
read as follows:


1804.671-3  Submission due date.

    The FACS report shall have information as of the last day of the 
month and shall arrive in NASA Headquarters not later than the close of 
business on the fifth work day following each month being reported. * * 
*
    8. Section 1804.671-4 is amended by revising the seventh sentence 
of the introductory text to read as follows:


1804.671-4  Preparing Individual Procurement Action Reports (NASA Forms 
507, 507A, 507B, 507G, and 507M).

    * * * Item numbers 2 through 7, 9, 15a, 20a, 51 through 61, and 66 
are for Acquisition Management Subsystem (AMS) reporting at the 
installation level only. * * *
* * * * *


1804.671-4  [Amended]

    9. Section 1804.671-4 is amended in paragraph (k) by republishing 
the paragraph heading and revising the first sentence to read as 
follows:
* * * * *
    (k) Item 8--Contractor identification code (CIC) number (7 
positions). This code is obtained from the publication ``NASA 
Contractor Identification Codes,'' managed by the Headquarters 
Procurement Systems Division (Code HM). * * *
* * * * *
    10. Section 1804.671-4 is amended in paragraph (n) by revising the 
entry for Code 24 and adding the following entry in numerical order to 
the table to read as follows:
* * * * *
    (n) * * *

------------------------------------------------------------------------
 Code                             Installation                          
------------------------------------------------------------------------
                                                                        
                                  *****                                 
24...  Dryden Flight Research Center.                                   
                                                                        
                                  *****                                 
73...  Space Station Program Office.                                    
                                                                        
                                  *****                                 
------------------------------------------------------------------------

    11. Section 1804.671-4 is amended in paragraph (r) by revising the 
last sentence to read as follows:
* * * * *
    (r) * * * These procurements must have one of the following 
competitive PPC's: AX, AE, AF, BX, BE, BF, FX, FE, FF, GF, KX, KE, QX, 
QF, RS, RE, RF, UX, UF, TX, TE, TF, XX, XE, XD, ZX, ZE, or ZD.
* * * * *
    12. Section 1804.671-4 is amended in paragraph (s) by removing 
``(other than reporting center's)'' in both places (i.e., for Codes 25 
and 26).
    13. Section 1804.671-4 is amended in paragraph (u) by revising the 
entry for Code 08 and by adding the following entry in numerical order 
to the table to read as follows:
* * * * *
    (u) * * *

------------------------------------------------------------------------
 Code                              Contractor                           
------------------------------------------------------------------------
                                                                        
                                  *****                                 
08...  Other nonprofit (Non-Minority). A non-minority nonprofit         
        institution or organization that is a corporation, foundation,  
        trust, or institution not organized for profit, and no part of  
        its net earnings is applied to the profit of any private        
        shareholder or individual.                                      
                                                                        
                                  *****                                 
18...  Other nonprofit (Minority). A minority nonprofit institution or  
        organization that is a corporation, foundation, trust, or       
        institution not organized for profit, and no part of its net    
        earnings is applied to the profit of any private shareholder or 
        individual.                                                     
                                                                        
                                  *****                                 
------------------------------------------------------------------------

    14. Section 1804.671-4 is amended by redesignating paragraphs (z) 
through (ttt) as paragraphs (bb) through (vvv), by redesignating 
paragraphs (v) through (y) as paragraphs (w) through (z), by adding 
paragraphs (v) and (aa), by redesignating newly designated paragraph 
(oo)(7) as paragraph (oo)(8), by adding paragraph (oo)(7), and by 
revising newly designated paragraph (vv) to read as follows:
* * * * *
    (v) Item 16a--Women-owned business (1 position). Enter ``Y'' (yes) 
or ``N'' (no) to indicate whether the business concern is a women-owned 
business. A women-owned business is one that is at least 51 percent 
owned by a woman or women who are U.S. citizens and who also control 
and operate the business.
* * * * *
    (aa) Item 20a--Contract/grant proposal number (18 positions). Enter 
the contract/grant proposal number in this field. This field is 
optional and not reported to Headquarters.
* * * * *
    (oo) * * *
* * * * *
    (7) Code G--Designated entities set-aside. Report this code for 
awards set-aside for disadvantaged business, women-owned business, 
HBCU's, and other minority institutions. (This covers the 26 
procurements authorized by the D&F signed by the Administrator on 
December 1, 1992.)
* * * * *
    (vv) Item 41--Reserved (1 position).
* * * * *
    15. Table 1804-1 is removed following section 1804.676, and a new 
table is added at the end of subpart 1804.6 reading as follows:

BILLING CODE 7510-01-P

TR16MR94.003

BILLING CODE 7510-01-C

PART 1808--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    16. Section 1808.802 is amended by revising the second sentence to 
read as follows:


1808.802  Policy.

    * * * Approval of printing supplies or services in contracts shall 
be in accordance with NMI 1490.1, NASA Printing, Duplicating, and 
Copying Management Program. * * *
    17. Section 1808.1100 is revised to read as follows:


1808.1100  Scope of subpart.

    NASA procedures for leasing motor vehicles from GSA or commercial 
sources are contained in NMI 6000.5, Transportation Management.

PART 1809--CONTRACTOR QUALIFICATIONS

    18. Section 1809.200 is revised to read as follows:


1809.200  Scope of subpart.

    This subpart prescribes policies and procedures that, like those of 
(FAR) 48 CFR part 9, subpart 9.2, are to be followed in the use of 
qualified products lists for procurement of microcircuits as authorized 
by NMI 5320.5, Basic Policy for NASA Space Flight Program Electrical, 
Electronic, and Electromechanical (EEE) Parts, and NMI 5320.6, 
Implementation of NASA Standard Electrical, Electronic, and 
Electromechanical (EEE) Parts Program.

PART 1810--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE 
DESCRIPTIONS

    19. In section 1810.002, the first sentence is revised to read as 
follows:


1810.002  Policy.

    Implementation of the Metric Conversion Act of 1975, as amended, 
and (FAR) 48 CFR 10.002(c), shall be in accordance with the policy 
section of NMI 8010.2, Use of the Metric System of Measurements in NASA 
Programs. * * *

PART 1814--SEALED BIDDING

    20. Paragraph (a) of section 1814.406-3 is revised to read as 
follows:


1814.406-3  Other mistakes disclosed before award.

    (a) Under the authority delegated by the Administrator in NMI 
5101.8, Delegation of Authority To Take Actions in Procurement and 
Related Matters, the Associate Administrator for Procurement is 
authorized to permit the correction of bids under (FAR) 48 CFR 14.406-3 
(a) and (b) and the award of a contract under (FAR) 48 CFR 14.406-3(d) 
(see (FAR) 48 CFR 14.406-3(e)). The Associate Administrator for 
Procurement has authorized procurement officers to permit withdrawal of 
bids when the conditions in (FAR) 48 CFR 14.406-3(c) are met.
* * * * *


1814.406-4  [Amended]

    21. Section 1814.406-4 is amended by removing paragraph (b) and by 
removing the paragraph designation from paragraph (a).

PART 1815--CONTRACTING BY NEGOTIATION

    22. Paragraph (b)(1) of section 1815.406-5 is revised to read as 
follows:


1815.406-5  Part IV--Representations and instructions.

* * * * *
    (b) * * *
    (1) State if the selected contractor will require access to 
classified information (see NHB 1620.3, NASA Security Handbook).
* * * * *
    23. Section 1815.570 is revised to read as follows:


1815.570  Foreign proposals.

    Unsolicited proposals from foreign sources are subject to NMI 
1362.1, Initiation and Development of International Cooperation in 
Space and Aeronautical Programs.
    24. In section 1815.807-70, paragraph (d)(1) is revised to read as 
follows:


1815.807-70  Content of the prenegotiation position memorandum.

* * * * *
    (d) Cost analysis. (1) Include a parallel tabulation, by element of 
cost and profit/fee, of the contractor's proposal, the Government's 
negotiation objective, and the Government's maximum position, if 
applicable. For each element of cost, compare the contractor's proposal 
and each Government position, explain the differences and how the 
Government position(s) were developed, including the estimating 
assumptions and projection techniques employed, and how the positions 
differ in approach. Include a discussion of excessive wages found (if 
applicable) and their planned resolution (see 1831.205-670). Explain 
how historical costs, including costs incurred under a letter contract 
(if applicable), were used in developing the negotiation objective.
* * * * *

PART 1816--TYPES OF CONTRACTS


1816.603-3  [Amended]

    25. Section 1816.603-3 is amended by removing paragraphs (a) (2) 
and (3), removing the paragraph designation from paragraph (a)(1) 
(making that paragraph and paragraph (a) introductory text one 
paragraph), and redesignating paragraphs (a)(1) (i) through (xi) as 
paragraphs (a) (1) through (11).

PART 1817--SPECIAL CONTRACTING METHODS

    26. In section 1817.504, the second sentence of paragraph (a) is 
revised to read as follows:


1817.504  Ordering procedures.

    (a) * * * Before offers are solicited from commercial sources, the 
field installation's Director or a designee (see NMI 5101.24, 
Delegation of Authority to Take Actions in Procurement, Grants, 
Cooperative Agreements, and Related Matters) must determine whether to 
obtain the supplies or services from another Government agency. * * *
* * * * *

PART 1824--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

    27. Section 1824.102 is revised to read as follows:


1824.102  General.

    For NASA rules and regulations implementing the Privacy Act, see 
NMI 1382.17, Privacy Act--NASA Regulations (14 CFR part 1212).
    28. Paragraph (a) of section 1824.202 is revised to read as 
follows:


1824.202  Policy.

    (a) NASA implementation of the Freedom of Information Act is found 
in NMI 1382.2, Availability of Agency Records to Members of the Public 
(14 CFR part 1206).
* * * * *

PART 1825--FOREIGN ACQUISITION

    29. In section 1825.604, the second sentence of paragraph (e) is 
revised to read as follows:


1825.604  Exempted supplies.

* * * * *
    (e) * * * The contracting officer shall consult 14 CFR 1214.15 (NMI 
8610.18, Duty-Free Entry of Space Articles) for procedures for 
obtaining the required Headquarters certificates for the duty-free 
entry of these articles.

PART 1831--CONTRACT COST PRINCIPLES AND PROCEDURES

    30. Sections 1831.205-670 and 1831.205-671 are added to read as 
follows:


1831.205-670  Evaluation of contractor and subcontractor compensation 
for service contracts.

    (a) The contracting officer shall evaluate the reasonableness of 
compensation for service contracts:
    (1) Prior to the award of a cost reimbursement or non-competitive 
fixed-price type contract which has a total potential value in excess 
of $500,000, and
    (2) Periodically after award for cost reimbursement contracts, but 
at least every three years.
    (b) The contracting officer shall ensure the reasonableness of 
compensation is evaluated for cost reimbursement or non-competitive 
fixed-price type service subcontracts under a prime contract meeting 
the criteria in paragraph (a)(1) of this section where:
    (1) The subcontract has a total potential value in excess of 
$500,000, and
    (2) The cumulative value of all of a subcontractor's service 
subcontracts under the prime contract is in excess of 10 percent of the 
prime contract's total potential value.
    (c)(1) Offerors shall be required to submit as part of their 
proposals a compensation plan addressing all proposed labor categories. 
Offerors also shall demonstrate in writing that their proposed 
compensation is reasonable.
    (2) Subcontractors meeting the criteria in paragraph (b) of this 
section shall be required to comply with paragraph (c)(1).
    (d) The contracting officer's preaward evaluation of each offeror's 
and their subcontractors' compensation should be done as part of, or in 
addition to DCAA audits, price analyses, or any other means deemed to 
be necessary.
    (e) The results of the contracting officer's evaluation, including 
any excessive compensation found and its planned resolution, shall be 
addressed in the prenegotiation position memorandum, with the final 
resolution discussed in the price negotiation memorandum.
    (f) The contracting officer shall ensure that the reasonableness of 
compensation for cost reimbursement subcontracts meeting the criteria 
in paragraphs (b)(1) and (2) of this section is periodically reviewed 
after award, but at least every three years.
    (g) The results of the periodic evaluations of contractor and 
subcontractor compensation after contract award shall be documented in 
the contract file.


1831.205-671  Solicitation provision.

    The contracting officer shall insert a provision substantially the 
same as the provision at 1852.231-71, Determination of Compensation, in 
solicitations for services which contemplate the award of a cost 
reimbursement or non-competitive fixed-price type service contract 
having a total potential value in excess of $500,000.

PART 1832--CONTRACT FINANCING

    31. The title and first sentence of section 1832.402-1 are revised 
to read as follows:


1832.402-1  Small Business Innovation Research contracts

    Advance payments for all Small Business Innovation Research (SBIR) 
Phase I contracts have been authorized through a class deviation. * * *
    32. Paragraph (d) of section 18.32.702-70 is amended by revising 
the third and four sentences to read as follows:


1832.702-70  [Amended]

* * * * *
    (d) * * * The procurement officer shall maintain a record of all 
such approvals during the fiscal year. At a minimum, the record will 
include: contract number, description and type; dollar value; amount of 
funds initially available; and the reason(s) for the waiver.
* * * * *


1832.705-2  [Removed]

    33. Section 1832.705-2 is removed.
    34. Section 1832.705-270 is amended by revising the first sentence 
of paragraph (b) as follows:


1832.705-270  Additional clauses for limitation of cost or funds.

(a) * * *
    (b) The contracting officer shall insert a clause substantially as 
stated at 1852.232-81, Contract Funding, in Section B of solicitations 
and contracts containing the clause at (FAR) 48 CFR 52.232-22, 
Limitation of Funds. * * *

PART 1835--RESEARCH AND DEVELOPMENT CONTRACTING

    35. In section 1835.003, paragraph (c) is revised to read as 
follows:


1835.003  Policy.

* * * * *
    (c) See NMI 5109.13, Recoupment Policy for the Sale, Use, Lease, or 
Other Transfer of NASA-Developed Technologies, for NASA policy 
regarding recoupment.

PART 1837--SERVICE CONTRACTING

    36. Section 1837.200 is revised to read as follows:


1837.200  Scope of subpart.

    This subpart implements and supplements (FAR) 48 CFR part 37, 
subpart 37.2 and NMI 5104.5, Guidelines for the Use and Approval of 
Advisory and Assistance Services Obtained by Contract, and establishes 
procedures to be followed in contracting for advisory and assistance 
services.

PART 1842--CONTRACT ADMINISTRATION

    37. In section 1842.173, the second sentence is revised to read as 
follows:


1842.173  Reimbursement for contract administration services.

    * * * Budgeting, funding, and payment for these services shall be 
accomplished in accordance with NMI 7410.1, Management, Funding, and 
Payment for Contract and Grant Administration and Audit Services 
Obtained from Other Federal Agencies. * * *
    38. In section 1842.202-72, the first sentence is revised to read 
as follows:


1842.202-72  Delegations to security offices.

    NASA's policies and procedures on security are set forth in NMI 
1600.2, NASA Security Program. * * *

PART 1845--GOVERNMENT PROPERTY

    39. Paragraph (a) of section 1845.302-70 is revised to read as 
follows:


1845.302-70  Securing approval of facilities projects.

    (a) Pursuant to NMI 7330.1, Delegation of Authority--Approval 
Authorities for Facility Projects, the contracting officer must approve 
facilities projects involving leasing, construction, expansion, 
modification, rehabilitation, repair, or replacement of real property.
* * * * *

PART 1846--QUALITY ASSURANCE

    40. In section 1846.270, the second sentence of paragraph (a) is 
revised to read as follows:


1846.270  Contract clauses for space flight-related operations.

    (a) * * * The clause, however, shall not be used in procurements 
for flight crew members or payload specialists when these individuals 
are covered by other NASA Management Instructions that have screening 
requirements equivalent to those in NMI 8610.13, Mission Critical Space 
Systems Personnel Reliability Program (for example, NMI 7100.16, 
Payload Specialists for Space Transportation System (STS) Missions).
* * * * *

PART 1847--TRANSPORTATION

    41. Section 1847.200-70 is revised to read as follows:


1847.200-70  Charter of aircraft.

    When procuring aircraft by charter, contracting officers shall 
comply with NHB 7900.3, Aircraft Operations Management Manual.

PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    42. Section 1852.231-71 is added to read as follows:


1852.231-71  Determination of Compensation Reasonableness.

    As prescribed at 1831.205-671, insert the following provision.

Determination of Compensation Reasonableness

(March 1994)

    (a) The proposal shall include a total compensation plan. This 
plan shall address all proposed labor categories, including those 
personnel subject to union agreements, the Service Contract Act, and 
those exempt from both of the above. The total compensation plan 
shall include the salaries/wages, fringe benefits and leave programs 
proposed for each of these categories of labor. The plan also shall 
include a discussion of the consistency of the plan among the 
categories of labor being proposed. Differences between benefits 
offered professional and non-professional employees shall be 
highlighted. The requirements of this plan may be combined with that 
required by the clause at (FAR) 48 CFR 52.222-46, ``Evaluation of 
Compensation for Professional Employees.''
    (b) The offeror shall provide written support to demonstrate 
that its proposed compensation is reasonable.
    (c) The offeror shall include the rationale for any conformance 
procedures used for those Service Contract Act employees proposed 
that do not fall within the scope of any classification listed in 
the applicable wage determination.
    (d) The offeror shall require all service subcontractors (1) 
with proposed cost reimbursement or non-competitive fixed-price type 
subcontracts having a total potential value in excess of $500,000 
and (2) the cumulative value of all their service subcontracts under 
the proposed prime contract in excess of 10 percent of the prime 
contract's total potential value, provide as part of their proposals 
the information identified in (a) through (c) of this provision.

(End of provision)


1852.237-71  [Amended]

    43. Paragraph (c) of the clause in section 1852.237-71 is amended 
by removing the footnote ``*'' and adding in its place ``________ [In 
accordance with 1837.170(a)(2), a period of time (e.g., one year) may 
be inserted.]'' and the footnote ``*'' to paragraph (c) is removed.

PART 1870--NASA SUPPLEMENTARY REGULATIONS

    44. In Appendix I to section 1870.103, paragraph 101.4. and the 
second sentence of paragraph 302.2. are revised to read as follows:

Appendix I to 1870.103: Guidelines for Acquisition of 
Investigations

* * * * *
Chapter 1--The Investigation Acquisition System
* * * * *
101  Key Features of the System
* * * * *
    4. When the need is determined by the Program Associate 
Administrator, payload specialists will be selected in accordance 
with NMI 7100.16, Payload Specialists for Space Transportation 
System (STS) Missions.
* * * * *
Chapter 3--The Announcement of Opportunity
* * * * *
302  Responsibilities
* * * * *
    2. * * * Attention is directed to NMI 1362.1, Initiation and 
Development of International Cooperation in Space and Aeronautical 
Programs.
* * * * *
    45. In Appendix I to section 1870.303, the first sentence of 
paragraph 404.2.l, the second sentence of paragraph 602.2, paragraph 
603.5.b, and the first sentence of paragraph 603.5.c. are revised to 
read as follows:

Appendix I to 1870.303--NASA Source Evaluation Board Procedures 
(Handbook)

* * * * *
Chapter 4--SEB Operating Procedures for Solicitation and Evaluation
* * * * *
404  Request for Proposals (RFP's)--Review and Approval
* * * * *
    2. * * *
* * * * *
    l. When the procurement involves a major system under NMI 
7120.4, Management of Major System Programs and Projects, and NHB 
7120.5, Management of Major System Programs and Projects Handbook, 
the SEB will ensure that the RFP is prepared in terms of mission 
need so each offeror can respond with an alternative system design 
concept proposal to satisfy the mission need and can propose a 
technical approach, design features, and alternatives to schedule, 
cost, and capability goals consistent with that concept. * * *
* * * * *
Chapter 6--Source Selection
* * * * *
602  Notice and Debriefing for Unsuccessful Offerors
* * * * *
    2. * * * This debriefing should normally take place prior to 
contract award and be conducted in accordance with 15.1003. * * *
* * * * *
603  Source Selection Statement
* * * * *
    5. * * *
    b. Accordingly, unless prior approval is obtained through the 
Headquarters Procurement Operations Division (Code HS) with the 
concurrence of the Office of General Counsel, Source Selection 
Statements for the selection of alternative system design concepts 
subject to NMI 7120.4, Management of Major System Programs and 
Projects, and NHB 7120.5, Management of Major System Programs and 
Projects Handbook, are not to be released to competing offerors or 
the general public, if requested, prior to the release of the Source 
Selection Statement for full-scale development.
    c. A similar problem may occur in other procurements where 
competition continues but is not covered under NMI 7120.4 or NHB 
7120.5. * * *
* * * * *
[FR Doc. 94-5144 Filed 3-15-94; 8:45 am]
BILLING CODE 7510-01-P